132 



APPENDIX TO CHAPTER VI 



Rules 



applying to 

 permitted 

 mortgages. 



of the land in lieu of interest and towards payment 

 of the principal, on condition that after the expiry 

 of the term agreed on, or (if no term is agreed 

 on, or if the term agreed on exceeds twenty years) 

 after the expiry of twenty years, the land shall be 

 redelivered to the mortgagor ; or 



(b) In the form of a mortgage without possession, subject 



to the condition that, if the mortgagor fails to pay 

 principal and interest according to his contract, the 

 mortgagee may apply to the Collector to place him 

 in possession for such term, not exceeding twenty 

 years, as the Collector may consider to be equitable, 

 the mortgage to be treated as a usufructuary mortgage 

 for the term of the mortgagee's possession, and for 

 such sum as may be due to the mortgagee on account 

 of the balance of principal due and of interest due 

 not exceeding the amount claimable as simple 

 interest at such rate and for such period as the 

 Collector thinks reasonable ; or 



(c) In the form of a written usufructuary mortgage, by 



which the mortgagor recognises the mortgagee as a 

 landholder and himself remains in cultivating occu- 

 pancy of the land as a tenant for such term as may 

 be agreed upon, subject to the condition that if the 

 mortgagor is ejected, or surrenders, or abandons 

 cultivating occupancy of the land, the mortgage 

 shall take effect as a usufructuary mortgage in form (a) 

 for such term not exceeding twenty years from the 

 date of the ejectment, surrender, or abandonment, 

 and for such sum of money as the Collector con- 

 siders reasonable ; or 



(d) In any form which the Local Government may, by 



general or special order, permit to be used. 



7. In the case of mortgages made under section 6 — 



(1) No interest shall accrue during the period for which 

 the mortgagee is in possession of the land, or in receipt 

 of rent ; 



(2) If the mortgage is in form (a) or form (b), then at the 

 end of such period of possession the mortgage debt shall be 

 extinguished ; 



(3) The mortgagor may redeem his land at any time during 

 the currency of the mortgage on payment of the mortgage 

 debt, or, in the case of a mortgage in form (a) or form (b), of 

 such proportion of the mortgage debt as the Collector deter- 

 mines to be equitable ; and 



(4) In the case of a usufructuary mortgage, the mortgagor 



